Truck rentals up by three to four per cent on trunk routes in November says Indian Institute of road transport

Truck Rentals up by 3 to 4 per cent on trunk
routes on the back of firm diesel price, revival in factory output by
increasing trips by 10%-15% and peak marriage season spending notwithstanding
the continuing drop in arrival of fruits and vegetables into Agricultural Price
Marketing Committees by 15 to-20 per cent during November 2017 according to
Indian institute of road transport

However, retail parcel freight charges
remained steady as ferrying of GST avoiding cargo on intra-State and
inter-State trade routes remained 'unhindered' in absence of national E-waybill
system and slack enforcement by tax agencies.

Truck sales grew by 51 per cent due to
extremely low base effect caused last year by demonetization and almost 15,000
trucks moving out of national permit circuit after their permit condition
period of 15 years being over last month resulting in replacement demand and
beginning of pre-buying to beat steep vehicle price hike by 4 to 5 per cent
from January 2018 as fitment of AC cabin or ventilator in trucks.-

Truck rental
trend: After 7 to-8 per
cent drop in truck rentals last month, the market witnessed a recovery by 3
to-4 per cent on the back of firm diesel price, 10 to fifteen per cent extra
cargo offerings from factory gates and jump in consumer spending in second half
of November due to peak marriage season despite continuing drop in arrival of
cereals, fruits and vegetables into Agricultural Price Marketing Committees by
15 to 20 per cent. However, retail
parcel freight charges remained steady as ferrying of GST avoiding cargo on
intra-State and inter-State trade routes remained 'unhindered' in absence of
national E-waybill system and slack enforcement by tax agencies. Generally, the
truck rentals remain fairly remunerated, while retail freight rates continue to
be on booming curve.

The following is the truck rental table
for the period of 2nd Nov'17 to 1st Dec’17 (i.e. November month 2017):

FULL TRUCK
LOAD (25.2 TON G.V.W.) rental (Rs per round trip)

Trunk
Route

Rental Movement

( per Round Trip)

(for 15 ton PAY LOAD)

Round Trip/

15 ton pay load

1

Rental as on

1st Oct'17

2

Rental as on

2nd Nov'17

3

Rental as on

1st Dec'17

4

Average Monthly truck rentals during Jan-Dec
2015

5

Average Monthly truck rentals during Jan-December 2016

6

Delhi - Mumbai-Delhi

87100(+12%)

80200(-7.9%)

83400(+4%)

76967

84921(+10%)

Delhi -
Nagpur-Delhi

84500(+12%)

77800(-8.0%)

80900(+4%)

76767

84563(+10%)

Delhi -
Kolkata-Delhi

84500(+12%)

77000(-7.3%)

80100(+4%)

78400

86275(+10%)

Delhi - Guwahati-Delhi

145500(+11%)

135300(-7.0%)

139400(+3%)

131950

140763(+7%)

Delhi - Hyderabad-Delhi

118800(+12%)

109300(-8.0%)

113700(+4%)

109317

119400(+9%)

Delhi - Chennai-Delhi

125200(+12%)

115200(-8.0%)

119800(+4%)

122308

131925(+8%)

Delhi - Bangalore-Delhi

132700(+12%)

122000(-8.0%)

126900(+4%)

121792

131708(+8%)

Delhi - Ranchi-Delhi

86800(+12%)

79900(-8.0%)

107900(+3.5%)

79600

87350(+10%)

Delhi – Raipur-Delhi

80800(+12%)

74300(-8.0%)

77300(+4%)

76208

82763(+9%)

Delhi - Kandla-Delhi

85700(+12%)

78800(-8.0%)

82000(+4%)

61358

72517(+19%)

Delhi - Bilaspur-Delhi

84700(+12%)

78000(-7.8%)

81100(+4%)

75950

83467(+10%)

Truck Sales: Last year"s
demonetization resulted in over 50 per cent drop in heavy truck sales but this
year the M&HCV sales have gone up by over 51 per cent on the extremely low
base effect, massive discounts, low EMIs and almost 15000 trucks going out of
national permit circuit last month and has created replacement purchase for
truck fleet owners.

The road transport ministry notification mandating
fitment of truck AC Cabin or ventilator from. January 1 and expected price hike
ranging Rs.20000/- - Rs.70, 000/- for different goods carriage variants, has
pushed up truck sales in the last week of November 2017.

The same trend is likely to take place during December
2017. Obviously, the present truck sales are not driven by any major
improvement in cargo offerings rather unnatural factors like low EMIs, steep
discounts and base effect are jacking up sales while, the existing return of
EMIs on the past truck buying is showing cracks in repayment of installments
which is very alarming.